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ACM issues warning against drop shipper Digital Advice

The Netherlands Authority for Consumers & Markets (ACM) has issued a warning against the unfair commercial practices of Digital Advice LLC. Digital Advice offers various products, such as trainers, tracksuits, bags, and bras, through a large number of websites. This company engages in drop shipping. This means that it sells products on its websites that it does not have in stock, but which are manufactured and shipped by a third party. This is allowed. However, as online sellers, drop shipping businesses must comply with the rules regarding online selling.

Consumers complain that the company often fails to deliver what was ordered, fails to deliver anything at all, or that another company delivers the product that was ordered. If consumers want to return products, Digital Advice cannot be reached, or they unexpectedly need to pay high shipping costs for returning the product abroad. In addition, consumers often are not helped by customer service, and they do not get any refunds. That is why ACM has issued a warning against this company, which sells its products on the following websites:

  • oslobrands.com
  • lucybreeze.com
  • getevelynbag.com
  • wideally.com
  • nl.batumishoes.com
  • gethypersoft.com
  • nl.gethyperdark.com
  • nl.thelacybra.com
  • linalift.com
  • nl.getlotusbreeze.com
  • nl.nbynicole.com
  • northernrules.com
  • stridershoes.com
  • nl.swatreact.com
  • nl.swatpants.com
  • swatshorts.com

Digital Advice regularly launches new websites. On these websites, it is usually not clear that they belong to Digital Advice. The trade name is often only mentioned in the general terms and conditions.

What was the problem?

Consumers spend, on average, between 30 and 120 euros on Digital Advice’s websites. Last year, ACM received over 1,000 complaints about the company’s websites. That figure is probably just a fraction of the actual number of consumer problems. Since Digital Advice is not officially registered in the Netherlands, ACM works closely together with international regulators to deal with the company. In order to prevent more consumers from getting harmed until then, ACM has issued a warning against Digital Advice.

Edwin van Houten, Director of ACM’s Consumer Department, adds: “Businesses using drop shipping, such as Digital Advice, must comply with the rules that apply to online stores. These rules are meant to protect consumers online. ACM will take enforcement action against businesses that do not comply with those rules, even if those businesses are not based in the Netherlands. That is why we are warning consumers against this business and its websites. Our advice to consumers is: when making online purchases, choose your online stores wisely.”

What can consumers do themselves?

Many drop shipping websites already exist, and new ones are constantly launched. To prevent you from being persuaded to make purchases you will regret later, you should check a number of things before clicking that purchase button.

  1. Verify the website’s contact details, its registration number with the Dutch Chamber of Commerce and/or VAT number. After all, you want to know whom you can contact if you wish to return a product or if you have any other issues;
  2. Read the information about costs, origin of the products, and delivery times. If important details are missing, ask yourself what risks you are willing to take such as additional costs or late delivery;
  3. Many drop shipping businesses advertise on social media such as Facebook and Twitter. If you go, on social media, directly to a product page, make sure you check the rest of the website to see whether the abovementioned details are available;
  4. Check consumer reviews before making your purchase, preferably reviews on sites other than the seller’s website. The reviews on the websites of sellers themselves may not always be trustworthy.

All of this information and more can be found on ACM’s consumer information portal ACM ConsuWijzer.

ACM has recently received many reports about companies that use drop shipping. That is why ACM is currently conducting an investigation into consumer issues related to drop shipping. As online sellers, drop shipping businesses must meet many requirements when delivering to Dutch consumers, even if those businesses are not based in the Netherlands or if they do not themselves ship the products. For example, it has to be clear in advance who ships the product and where it comes from.

Are you a drop shipper, or are you planning on drop shipping soon? Make sure you read up on the statutory obligations that you as an online store have vis-à-vis consumers. In that way, you can prevent many problems for yourself and for others.